Copper prices stabilize combined with low inventory, spot premiums clearly rise from yesterday [SMM South China spot copper]

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 20 Aug , 2026

Chile has introduced a new package of mining-policy measures aimed at accelerating investment, shortening project-development timelines and lifting national copper production toward 6 million tonnes per year, as the world’s largest copper-producing country attempts to reverse a prolonged period of weak output growth. The policy push comes at a time when Chile’s mine supply has struggled to regain previous highs, with national production remaining around the 5–5.5 million tonne range in recent years despite strong copper prices and a substantial portfolio of brownfield expansions and undeveloped deposits. The gap between current production and the 6-million-tonne target therefore implies that Chile must unlock several hundred thousand tonnes of additional annual supply through a combination of higher output from existing operations and faster development of new projects.​ A central component of the package is regulatory reform. The government is advancing the Framework Law on Sectoral Authorisations, which is intended to reduce processing times for project approvals by between 30% and 70%. This is particularly significant for copper because large-scale mining projects in Chile can require numerous sectoral permits before construction begins, meaning lengthy approval processes can delay the conversion of mineral resources into actual mine supply. Reducing permitting timelines would not immediately increase copper production, but it could shorten the period between investment decisions, construction and first output, improving the medium-term visibility of Chile’s project pipeline.​ The government is also seeking to improve the broader investment environment through tax and regulatory measures. Plans include gradually reducing the corporate tax rate from 27% to 23% and restoring tax-stability arrangements of up to 25 years for strategic projects. For capital-intensive copper developments, where investment can run into several billion dollars and project lives often extend for decades, greater fiscal certainty can materially affect expected returns and financing decisions. The measures therefore appear designed not simply to increase exploration spending, but to improve the probability that large projects progress from feasibility into construction.​ Exploration is another important part of the strategy. Chile has established a public-private technical working group focused on improving access to financing for junior miners, strengthening venture-capital participation and reducing regulatory barriers to greenfield exploration. This matters because much of Chile’s current copper production comes from mature deposits, while sustaining long-term output will increasingly require new discoveries and the development of deeper or lower-grade resources. Without a stronger exploration pipeline, policy reforms aimed only at existing operations would risk improving near-term output while leaving the longer-term supply base relatively constrained.​ The 6-million-tonne target is significant in global terms. An increase from around 5.5 million tonnes to 6 million tonnes would represent roughly 500,000 tonnes of additional annual mined copper supply, equivalent to the output of a large world-class copper operation. Given Chile’s scale in the global market, even a partial recovery toward that level could materially affect concentrate availability and the broader mine-supply balance, particularly at a time when several major producing regions are facing declining grades, infrastructure constraints and longer project-development cycles.​ From a copper-market perspective, the policy package is therefore less about an immediate increase in supply and more about improving Chile’s ability to convert its large resource base into new production. The key question will be execution: whether shorter permitting times, stronger fiscal certainty and improved exploration financing can translate into final investment decisions, construction activity and ultimately additional copper tonnes. If implemented effectively, the reforms could strengthen Chile’s medium-term production outlook; if approvals and project execution remain slow, the 6-million-tonne objective may continue to prove difficult despite favorable copper prices and strong underlying demand.